Sustainability - Raising Commitment for Implementation

Lack of commitment, a common story.

?It's just another Monday morning, and I find myself nestled in the usual spot at my desk. I settle into a comfortable chair while grabbing a cup of coffee, preparing for a video call with one of my clients. The screen flickers to life, and soon, a familiar face appears, framed by the confines of a digital window.

As the call progresses, my client delves into the heart of the matter. He's passionate about his role in steering his company toward sustainability, a commitment that he believed was shared by the upper management. However, as he explains, every time the conversation turns from strategy to the actual allocation of financial resources or assigning staff for implementation, enthusiasm seems to wane. "It's all well and good on paper," he tells me, his voice tinged with frustration. "But when it comes to putting money or manpower on the line, that commitment always seems to slip through the cracks."

This narrative isn't new to me. Over the years, I've heard similar tales from a myriad of sources—former clients and colleagues, mentored students and workshop and conference attendees. Either openly or with discreet comments in corridors, they all echo the same sentiment: "I can't seem to garner genuine commitment." It's a shared struggle across the spectrum, highlighting a common disconnect between business strategy and practical execution in the realm of corporate sustainability.?

I nod in understanding as my client speaks. "I get it," I begin. "You’re a true believer. You want to make a difference." I pause for a moment. "But let’s not be so naive as to think that in every business, the board is going to be deeply committed to sustainability in the long run, to reputational value, ethics, and so forth," I add.

Does this mean all is lost? No, not at all.

Empathy and understanding as a starting point.

Some people want to save the world, others the bottom line. A Sustainability Leader has to do BOTH.

?I already know you have the “save the world” part covered but, do you really know what it takes to save the bottom line of the business?

Think about the responsibilities of the administrative team.

The team must ensure that the company is financially healthy, meaning it can generate enough revenue to cover its expenses, pay employees, support growth, and deliver value to shareholders. The financial sustainability is crucial as it forms the backbone of any company's long-term survival and success.

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However, the concerns of the administrative team don’t stop there.

They must also consider how their decisions impact various stakeholders, including employees, customers, and the community. They need to balance immediate financial goals with long-term strategies. This balancing act is challenging because these broader initiatives often require upfront investment and may not yield immediate financial returns.

Thus, the administrative team frequently finds themselves weighing short-term financial pressures against the long-term health and ethical stance of the company. This is a delicate equilibrium where foresight, strategy, and sometimes courage play pivotal roles in shaping the company's future.?

Could you help them bridge this gap?

Connecting with the Business Vision.

The first step is to gauge the organization's pulse. You need to understand and be fully aware of the current phase of the business. Is it in an expansion phase? Is it in a period of consolidation and stabilization? What are the plans for the medium and long term?

Analyze the corporate strategy and the latest annual reports. Review the objectives and metrics used in decision-making. If possible, access your CEO's management dashboard. Understanding the flow of information used for monitoring and decision-making will reveal a lot about the future vision the business aims to realize.

Lastly, identify the problems and resistances your organization is encountering along the way. Ask questions about the progress of the strategy and the achievement of objectives and try to build as clear a vision as possible of the most significant challenges the organization faces.

Just showing an active interest in the business development will already enhance your connection with the company's management and bring you closer to your goal. Securing that commitment.

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Align Challenges with Solutions.

Having established a connection with the management and a clear vision of the obstacles the organization faces, it is now time to build your business case and bridge the gap between challenges and contributions.

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The question you need to answer for yourself and then for others is:

How can Corporate Sustainability help realize the business vision?

?If your organization has conducted a double materiality analysis process, you can use much of the information gathered here.

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Let's see an example:

Suppose your company belongs to a sector that requires highly qualified personnel (like the pharmaceutical sector). The business is gearing up for an organic expansion process.

Your business has what is known in sustainability as human capital dependency (learn more about the capitals approach here). This means that a lack of access to trained professionals could materially reduce your operational capacity.

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Therefore, you need to ensure a good recruitment capacity and maintain or reduce employee turnover. We know that aspects valued by the millennial generation include (besides salary conditions): brand reputation and purpose, work-life balance, and well-being.

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Moreover, you likely want to have a two-way communication channel with your employees to convey the initiatives you are implementing and to receive feedback on what they truly want (implementing programs that no one needs or asks for tends to be a waste of resources with little return in terms of satisfaction).In other words, you want to engage with this stakeholder group.

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Quantify and Communicate in Management's Language

Here is where most sustainability leaders fail, creating a very weak bridge between the organization's problems and the potential impact of Sustainability on the business.

To secure the commitment you seek, you must be able to demonstrate, clearly and transparently, that the actions you intend to implement will significantly contribute to the strategic development of the business.

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Returning to the previous example, the initial assertion could be: "If we want to grow at the pace we've set, we'll need to be able to integrate many new employees and ensure we keep those already with us, so we need to ensure that our brand is attractive and our conditions are competitive."

?Now, to make a solid business case, we need more detail:

• To grow at the rate we have established, we need to increase our staff by X% annually.
• The unemployment rate for this profile in the countries where we want to grow is X%.
• Our turnover rate is X% higher than our competitors'.
• The average cost of replacing one of our employees is X euros (high, since highly qualified profiles often have a long adaptation period). Therefore, we are spending X euros annually due to the difference in average turnover.
• According to studies 1, 2, and 3, besides salary conditions, the current labor market values, in order of priority: x, z, and y.
• In our exit interviews, employees cite reason X as the main reason for leaving the company.
• At this moment, we are behind the market average in practices like telecommuting, wellbeing, internal training, and engagement.

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After, and only after, having connected the business objectives with the detected problems, can you start talking about your action plan, the areas you intend to influence, and the expected results.

If possible, try to calculate the return on investment, considering the current costs, the opportunity cost, the potential impact of inaction on the business strategy, and, of course, the approximate cost of your action plan.

Find partners who agree with your vision, co-create the business case and action plan, and can take the lead in implementation. In our example above, the key partner is the HHRR Director.

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Whenever commitment to implementation wanes and and short-termism takes over, press on the pain points again.

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If you want commitment, you will have to show commitment.

My client looks across at me, visibly stressed, and asks with a hint of sarcasm, "Is it really that simple?"

I offer him a reassuring smile and respond, "I never said it was easy. But it’s definitely worth it."

We dive into the details, discussing potential strategies and the intricacies of implementation. Each question he poses reflects his deep concern for the practicalities, and with each answer, I see a spark of understanding and possibility light up his expression.

As our meeting draws to a close, we exchange goodbyes, both of us looking forward to our next session to further refine our plans. There's a lot to do, and the path ahead isn't simple.

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It's just another Monday morning.